Avon Products, Inc., is a global manufacturer and marketer of beauty and related products, including cosmetics, toiletries, fragrances, jewelry, gifts, home furnishings, and health and wellness offerings. Unlike most of its rivals, Avon’s business is comprised primarily of Internet and direct selling by over 6 million independent contractors worldwide who serve as company representatives. Headquartered in the United States, Avon operates in over 110 countries, including Canada and Mexico, as well as in other parts of Latin America, Europe, and Asia.

Avon was launched in 1916 and later began to emerge as one of the most successful beauty and cosmetic marketers in the world, primarily supported by housewives who sold the products as a means of generating extra income. By 1970, Avon had grown into the undisputed world leader in cosmetics. In the mid-1970s, however, the company suffered as a global recession made its products less affordable and women in the West began to leave home in search of full-time employment. Following this period, Avon began to market more intently to younger women and teenagers and even launched the slogan, “It’s not your mother’s makeup.”

In the late 1980s and early 1990s, Avon expanded its product line considerably, introducing Avon Color cosmetics in 1988, preschool toys and sleepwear in 1989, and apparel in 1994.

“Avon calling” has been central to the New York City-based firm’s advertising campaigns in recent years.

Lately, however, slow growth in the United States has led to another “makeover” for Avon, as the company began to drop a number of product lines in favor of brands with greater global promise. In 2001, the company revised its website, allowing Avon reps to sell products through their own personal websites with assistance from the youravon.com site. In 2002, Avon announced a $100 million investment in research and development (R & D) aimed at fostering a greater global presence. In the mid-2000s, Avon launched a new cosmetics line called “mark”

targeted to the ages 16 to 24 category. New York Yankees star Derek Jeter has promoted Avon’s men’s fragrance Driven.

The late 2000s and early 2010s has been a period of change for Avon. The firm has expanded globally, including a significant presence in Brazil, China, Russia, and the United Kingdom. Avon focused on cost-cutting as well, however, including a reduction of more than 10% of its workforce in 2008.

Avon has been promoted as the “company for women” by providing business opportunities for women worldwide and supporting women’s charities. Part of the firm’s mission is to develop its Avon Foundation into the largest women’s foundation in the world. The group actively supports a number of projects associated with economic empowerment and health issues.

Case Challenges

1. How has Avon capitalized on growth outside of the United States? Should Avon continue to focus its growth efforts on international markets?

2. Is Avon’s direct selling approach outdated? Why or why not?

3. What can Avon do to attract young consumers in a highly competitive industry?